Supplier accounts payable are obligations to pay for goods or services that were purchased in the normal course of business. They are initially recognized at fair value and subsequently measured at amortized cost using the effective interest rate method. Given the short maturity terms of these obligations, in practical terms they are usually recognized at their invoice values.
| 2017 | 2016 | |||
| Local currency | ||||
| Suppliers of materials and services (a) | 3,649,543 | 3,108,497 | ||
| Interconnection (b) | 155,114 | 181,580 | ||
| Roaming (c) | 1,051 | 3,349 | ||
| Co-billing (d) | 62,895 | 85,554 | ||
| 3,868,603 | 3,378,980 | |||
| Foreign currency | ||||
| Suppliers of materials and services (a) |
80,869 |
67,511 | ||
| Roaming (c) | 37,085 | 14,590 | ||
| 117,954 | 82,101 | |||
| Current portion | 3,986,557 | 3,461,081 |
(a) Represents the amount to be paid to suppliers for the acquisition of materials and the provision of services relating to tangible and intangible assets or for consumption during operations, maintenance and management, as provided for in the agreement between the parties.
(b) This refers to the use of the networks of other landline and mobile telephone operators, with calls being initiated from TIM’s network and ending on the networks of other operators.
(c) This refers to calls made by customers outside their registration areas, who are therefore considered visitors to other operators’ networks.
(d) This refers to calls made by a customer who chooses another long-distance operator.